(HTGC) Hercules Capital - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 2.968m USD | Total Return: -4.4% in 12m
Industry Rotation: +4.2
Avg Turnover: 28.9M
EPS Trend: 41.8%
Qual. Beats: 0
Rev. Trend: 47.7%
Qual. Beats: -1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Hercules Capital (NYSE: HTGC) is a specialty finance company operating as a Business Development Company (BDC). The firm focuses on providing senior secured venture debt, growth capital, and structured debt solutions to venture capital-backed companies across various stages, from expansion to established growth. Its investment portfolio primarily targets the technology, SaaS, life sciences, and sustainable energy sectors.
The BDC business model is characterized by providing non-dilutive capital to emerging companies that may lack the collateral or cash flow history required for traditional bank loans. As a regulated investment company, Hercules Capital must distribute at least 90% of its taxable income to shareholders annually to maintain its tax-exempt status at the corporate level. The firm frequently secures equity kickers, such as warrants, which provide potential upside during portfolio company liquidity events like IPOs or acquisitions.
Investors can further examine the firms portfolio health and dividend sustainability by reviewing the detailed analytics available on ValueRay.
- Rising benchmark interest rates drive higher yields on floating-rate debt portfolio
- Growth in venture capital funding activity increases new loan origination volume
- Credit quality and loss rates within late-stage technology and life sciences portfolios
- Equity warrant gains from portfolio company IPOs or mergers boost net asset value
- Access to low-cost institutional debt capital impacts net interest margin spreads
| Net Income: 331.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -4.81 > 1.0 |
| NWC/Revenue: -0.51% < 20% (prev -44.00%; Δ 43.48% < -1%) |
| CFO/TA -0.07 > 3% & CFO -351.7m > Net Income 331.9m |
| Net Debt (2.51b) to EBITDA (357.6m): 7.02 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (196.8m) vs 12m ago 12.22% < -2% |
| Gross Margin: 85.78% > 18% (prev 0.80%; Δ 8.50k% > 0.5%) |
| Asset Turnover: 12.43% > 50% (prev 9.67%; Δ 2.76% > 0%) |
| Interest Coverage Ratio: 3.55 > 6 (EBITDA TTM 357.6m / Interest Expense TTM 100.6m) |
| A: -0.00 (Total Current Assets 42.4m - Total Current Liabilities 45.2m) / Total Assets 4.83b |
| B: 0.01 (Retained Earnings 56.9m / Total Assets 4.83b) |
| C: 0.08 (EBIT TTM 357.3m / Avg Total Assets 4.43b) |
| D: 0.02 (Book Value of Equity 57.1m / Total Liabilities 2.60b) |
| Altman-Z'' Score: 0.60 = B |
| DSRI: 0.86 (Receivables 40.4m/33.1m, Revenue 550.6m/389.9m) |
| GMI: 0.93 (GM 85.78% / 79.68%) |
| AQI: 1.01 (AQ_t 0.99 / AQ_t-1 0.97) |
| SGI: 1.41 (Revenue 550.6m / 389.9m) |
| TATA: 0.14 (NI 331.9m - CFO -351.7m) / TA 4.83b) |
| Beneish M-Score: -2.75 (Cap -4..+1) = A |
Over the past week, the price has changed by -1.35%, over one month by -0.18%, over three months by +3.32% and over the past year by -4.35%.
- StrongBuy: 3
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.3 | 24.3% |
P/E Forward = 8.9686
P/S = 5.3519
P/B = 1.357
P/EG = 0.5247
Revenue TTM = 550.6m USD
EBIT TTM = 357.3m USD
EBITDA TTM = 357.6m USD
Long Term Debt = 2.54b USD (estimated: total debt 2.55b - short term 15.2m)
Short Term Debt = 15.2m USD (from shortTermDebt, last quarter)
Debt = 2.55b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.51b USD (from netDebt column, last quarter)
Enterprise Value = 5.48b USD (2.97b + Debt 2.55b - CCE 42.4m)
Interest Coverage Ratio = 3.55 (Ebit TTM 357.3m / Interest Expense TTM 100.6m)
EV/FCF = -15.58x (Enterprise Value 5.48b / FCF TTM -351.7m)
FCF Yield = -6.42% (FCF TTM -351.7m / Enterprise Value 5.48b)
FCF Margin = -63.88% (FCF TTM -351.7m / Revenue TTM 550.6m)
Net Margin = 60.28% (Net Income TTM 331.9m / Revenue TTM 550.6m)
Gross Margin = 85.78% ((Revenue TTM 550.6m - Cost of Revenue TTM 78.3m) / Revenue TTM)
Gross Margin QoQ = 70.66% (prev none%)
Tobins Q-Ratio = 1.14 (Enterprise Value 5.48b / Total Assets 4.83b)
Interest Expense / Debt = 1.10% (Interest Expense 28.1m / Debt 2.55b)
Taxrate = 21.0% (US default 21%)
NOPAT = 282.2m (EBIT 357.3m * (1 - 21.00%))
Current Ratio = 0.94 (Total Current Assets 42.4m / Total Current Liabilities 45.2m)
Debt / Equity = 1.15 (Debt 2.55b / totalStockholderEquity, last quarter 2.23b)
Debt / EBITDA = 7.02 (Net Debt 2.51b / EBITDA 357.6m)
Debt / FCF = -7.14 (negative FCF - burning cash) (Net Debt 2.51b / FCF TTM -351.7m)
Total Stockholder Equity = 2.20b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.49% (Net Income 331.9m / Total Assets 4.83b)
RoE = 15.11% (Net Income TTM 331.9m / Total Stockholder Equity 2.20b)
RoCE = 7.55% (EBIT 357.3m / Capital Employed (Equity 2.20b + L.T.Debt 2.54b))
RoIC = 6.33% (NOPAT 282.2m / Invested Capital 4.46b)
WACC = 5.52% (E(2.97b)/V(5.52b) * Re(9.52%) + D(2.55b)/V(5.52b) * Rd(1.10%) * (1-Tc(0.21)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 10.33%
[DCF] Fair Price = unknown (Cash Flow -351.7m)
EPS Correlation: 41.81 | EPS CAGR: 11.42% | SUE: 0.42 | # QB: 0
Revenue Correlation: 47.71 | Revenue CAGR: 48.70% | SUE: -1.45 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=+2.33% | Revisions=+20% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.49 | Chg30d=+0.93% | Revisions=-14% | Analysts=8
EPS current Year (2026-12-31): EPS=1.96 | Chg30d=+1.38% | Revisions=+0% | GrowthEPS=+2.4% | GrowthRev=+10.5%
EPS next Year (2027-12-31): EPS=1.98 | Chg30d=+1.03% | Revisions=+25% | GrowthEPS=+1.3% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +25%